Apple’s (AAPL) servers can’t handle the demand for iPhone 3.0 upgrade requests.
Many people are reporting this error to Twitter: “We could not complete your iTunes Store request. The network connection timed out.”
We’ll follow up with tips if we find any.
This is the second straight year that Apple’s infrastructure has failed it during a major OS upgrade.
Update: We ejected and plugged the phone back in, and it worked. Nothing got erased. So should work eventually.